There is growing interest in, and demand for, domestic carbon credits as they can provide a useful complement to other policy instruments such as carbon tax and emissions trading. However, designing a domestic crediting mechanism that balances high environmental integrity, low transaction costs and low administrative burden can be challenging.  

This session will shed light on the potential role of carbon crediting in a domestic context and highlight the main considerations for designing and governing a domestic crediting mechanism. Drawing from the PMR’s recent publication ‘A Guide to Developing Domestic Carbon Crediting Mechanisms’, this session will also provide insights into key challenges, the decision points for designing a crediting mechanism, and how to tailor a mechanism to achieve domestic policy objectives.